Joint Venture Buys Cleveland-Area Shopping Center for $47M

By Adrian Maties, Associate Editor

A joint venture between two East Coast companies has purchased the Golden Gate Shopping Center in Mayfield Heights. New York-based Hornig Capital Partners LLC and Hutensky Capital Partners of Hartford, Conn., paid $47.1 million for the premier retail plaza. Cleveland-based Forest City was the seller. The deal represents one of the largest single-asset retail sales in the Cleveland market in the past two years.

The property was constructed in 1958. It offers 371,748 square feet of space and is anchored by well-known stores such as Marshalls, PetSmart, Golf Galaxy, h.h. gregg, OfficeMax and Jo-Ann Fabrics. Golden Gate’s convenient location, at the intersection of Mayfield Road and Interstate 271, makes it easily accessible from many of the neighboring Cleveland suburbs. The property was last renovated in 1995.

Joseph Khouri, first vice president at CBRE Inc., represented the buyers in the transaction. Goodman Real Estate Services Group LLC represented Forest City.

“I am very proud to be part of such a monumental transaction in the Cleveland market. It is gratifying to see hard work pay off while providing the highest level of service and ultimately value to our client. We represent a number of active buyer-clients currently pursuing quality unlisted or off-market retail assets in Ohio in various asset categories from $10 to $100 million,” Khouri said in a news release.

In its second-quarter retail market report for the Cleveland-Akron area, Marcus & Millichap says that investor demand for multi-tenant assets has accelerated. Sales activity has surged 60 percent over the past 12 months, with the average sales price rising 5 percent to $114 per square foot.